The personal products company's stock surpassed its previous high of Rs 407, touched on September 15, 2020. In comparison, the S&P BSE Sensex was down 0.52 per cent at 44,290 points, at 12:15 pm.
In the past one week, Emami has outperformed the market by gaining 9 per cent after the company announced its forays into home hygiene space with ‘EMASOL’. With this launch, the Company, which so far enjoyed a leading presence in the personal care and healthcare space, makes a big bang entry into the homecare segment for the very first time. The benchmark index was remained flat during the same period.
The company’s management said the Covid-19 pandemic has accelerated home hygiene consciousness to newer heights. People are more concerned about maintaining household hygiene with higher frequency of cleaning across all economic strata.
Emasol Range offers a strong combination of Emami’s leading brand equity plus a superior R&D innovation offering upto 24 hrs of protection from virus, germs and bacteria, which is a first in Indian market. We expect a very encouraging market response from this launch as consumers are on lookout for hygiene products that are effective and enjoy high level of brand trust, it said.
Analysts at Centrum Broking reckon it’s a right strategy to spread into all weather product categories and attempt to cut seasonality impact on its revenues. The brokerage firm believes consumers are on lookout for hygiene products that are effective and enjoy high level of brand trust at an affordable price points.
“We believe Emami’s underperformance in the past few quarters have majorly reflected due unpredictable season. Its new launches of all season healthcare and home hygiene range is expected to contribute around 4-5 per cent of sales, yet new products in Crème’21 rolled out in international business appears to be promising. Moreover, expanding direct reach, rising wholesale contribution driving rural sales, and international business in the fast lane, could benefit Emami to grow revenues rapidly,” the brokerage firm said in event update. It maintains ‘buy’ rating on the stock with target price of Rs 444 per share.